The Least Squares Method Requires That the Variance of the Error

question 30

Multiple Choice

The least squares method requires that the variance of the error variable e is a constant no matter what the value of x is. When this requirement is violated, the condition is called:

• A)heteroscedasticity.
• B)homoscedasticity.
• C)influential observation.
• D)non-independence of e .

---

Definitions:

Death

The cessation of all biological functions that sustain a living organism, marking the end of life.

Annual Income

is the total amount of money earned by an individual, organization, or entity in one year, from all sources before taxes and deductions.

Education Level

The highest degree or level of schooling completed by an individual.

Likelihood Of Marriage

The probability or chance that an individual will get married, influenced by various social, cultural, and personal factors.